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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br /> (I) Noncurrent Liabilities, continued
<br />Limited Tax Bonds, continued
<br />Annual debt service requirements to maturity for limited tax pension bonds are as follows:
<br />Governmental activities
<br />Fiscal year
<br />ending June 30PrincipalInterest
<br />2012$844,0994,150,273
<br />2013899,4574,344,915
<br />2014949,7984,559,574
<br />2015978,8614,805,512
<br />20161,003,9225,065,451
<br />2017-202110,715,68424,349,654
<br />2022-202626,595,00010,512,351
<br />2027-202814,585,0001,337,463
<br /> 56,571,82159,125,193
<br />Total limited tax bonds$57,492,27859,845,803
<br />Tax Increment Bonds
<br />The City’s Urban Renewal Agency issues tax increment bonds to finance major construction projects in
<br />governmental and business-type activities. The purpose of the Urban Renewal Agency is to stimulate
<br />economic development by financing public improvements within designated districts. Tax increment bonds are
<br />serviced by property tax increment revenues. When an urban renewal district is first created, the property
<br />assessed value within the district boundaries is established as a “frozen base”. The Urban Renewal Agency
<br />receives property taxes related to the incremental increase in the property assessed value that is in excess of
<br />the “frozen base”.
<br />On May 25, 2011, the City issued $7,900,000 of Downtown Urban Renewal District Tax Increment Bonds,
<br />Series 2011 A, dated May 25, 2011, bearing a fixed interest rate of 5.20%, and maturing on June 1, 2020. The
<br />proceeds of the Bonds were used to refund $4.4 million in debt service associated with the limited tax bonds
<br />issued by the City to finance construction of the Broadway Garages and $3.5 million in financial assistance to
<br />Lane Community College to help build their new Downtown Campus.
<br />The refunding of the Broadway Garages Limited Tax Bonds, Series 1997 resulted in an economic gain despite
<br />the net cost from refunding. The economic gain realized in this refunding was $84,000 and the net cost
<br />resulting from the refunding was as follows:
<br />Cash flow requirements to service old debt$5,574,191
<br />Less: Cash flow requirements for new debt(5,600,976)
<br />Net cash from refunding$(26,785)
<br />continued
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